Displaying items by tag: Semen Gresik
Indonesia: Semen Indonesia has reported US$1.13bn of revenue in the first half of 2014, a 12.8% year-on-year increase. During the first six months of 2013, revenues grew by 31.9% compared to 2012. The decelerated growth is attributed to reduced domestic demand, which is affecting the Indonesian cement industry as a whole.
Sales volumes in the first half of 2014 grew by 4.6% year-on-year to 12.8Mt. Semen Indonesia's subsidiary, Semen Gresik, contributed almost 54% of the sales volumes. Semen Padang accounted for 26% and Semen Tonasa contributed the remaining 20% of sales volumes. Net profit for the first six months of 2014 stood at US$46.9m, a 9.3% year-on-year increase, while higher expenses and foreign exchange losses contributed to higher costs. Semen Indonesia has forecast an 8% increase in revenue for the whole of 2014.
The latest statistics from the Indonesian Cement Association show a 4% increase in domestic cement consumption in the first half of 2014, lower than the 7.5% growth reported for the first half of 2013.
Asia: PT Semen Indonesia's subsidiary PT Semen Padang has commenced construction of its US$279.5m Indarung VI cement plant in Padang, West Sumatra on 26 May 2014. The new plant, which has an annual cement production capacity of 3Mt/yr, is expected to commence operations in the second half of 2016.
"We are developing the Indarung VI factory as the demand for cement keeps increasing across Sumatra and western parts of Java," said Dwi Soetjipto, CEO of PT Semen Indonesia. With the operation of the new plant, Semen Padang's total cement production capacity is expected to increase to 10.5Mt/yr, up from 7.5Mt/yr.
Brisk development of property, toll roads, and other infrastructure projects has pushed up demand for cement in East Java. "Demand for cement in the country has increased. All cement production is absorbed by the market for government and private properties and infrastructure projects," Bambang Djoko claimed. The commercial director of PT Semen Gresik Aunur Rosyid said that cement sales in West Java reached 2.83Mt in the first four months of 2014, an increase of 9.8% from 2.56Mt in 2013. "The growth exceeded the 3.7% growth of cement sales nationally in the same year," said Rosyid.
Elsewhere, PT Semen Indonesia has announced that it may acquire a cement plant in Bangladesh as part of its efforts to expand business. Soetjipto stated that the Bangladeshi cement plant has a production capacity of 0.60 – 1Mt/yr.
"We are now in the process of approaching the management of the plant for further negotiations. Hopefully, it can be realised in the coming six months," Soetjipto said. He was reluctant to reveal financial details, saying that the acquisition value was less than that made for Thang Long Cement in Vietnam. In November 2012 Semen Indonesia acquired 70% of Thang Long Cement (worth US$157m) from Geleximco.
Soetjipto also disclosed that Thang Long Cement will build a new plant in Rembang, Central Java in June 2014. "We will begin the construction of a new plant in Rembang in mid-June 2014," he remarked. He explained that with the development of new factories in Padang and Rembang and upgrades to the existing plants, Semen Indonesia will have a combined production capacity of 40.8Mt/yr by 2017.
PT Semen Indonesia hopes to boost its sales in Vietnam by expanding the production capacity of its Vietnamese subsidiary Thang Long Cement. " Thang Long Cement's market share in Vietnam is relatively small at around 2.3Mt/yr, but its market potential is huge," said Thang Long Cement executive Bambang Djoko.
Indonesia: Semen Gresik, a subsidiary of Semen Indonesia, will receive a non-cash loan facility worth US$123m from the lender to build a new 3Mt/yr cement plant in Rembang regency, Central Java.
Cement producer PT Semen Gresik, subsidiary of state-owned PT Semen Indonesia, has secured a letter of credit (L/C) facility to help finance the construction of its newest plant. Under the deal, Abdul Rachman, the state lender of Bank Mandiri, agreed to issue L/Cs for Semen Gresik for the next 42 months to support the purchase of machinery or equipment from overseas. The equipment will be used to construct Semen Gresik's new plant in Rembang, Central Java. The plant is worth US$325m and is expected to commence operations in 2016 with a cement production capacity of 3Mt/yr.
The plants will be operated by subsidiary PT Semen Padang and are currently able to produce up to 6.5Mt/yr of cement. "We are looking to increase the annual capacity by 3Mt/yr and the project will need around US$281m in investment," said Semen Indonesia finance director, Ahyanizzaman. "About half of the costs will be financed by our internal funds and the rest by a syndicated loan, led by Mandiri." Supported by the Rembang and Indarung plants, Semen Indonesia's total production capacity will surge to 40Mt/yr by 2017, from the 31.8Mt/yr that has been forecast for 2014.
Indonesia: FLSmidth has received a Euro42m order from Indonesian cement producer PT Semen Gresik for a greenfield cement plant with a capacity of 8000t/day. The new plant will be located just outside of the city of Rembang in the north east of Java, Indonesia.
The order comprises equipment for the main part of the production line, including a raw mill, coal mill, preheater, kiln, burner, clinker cooler and silo equipment as well as a complete control system for the entire plant. The order will be booked by the Cement Division and will contribute beneficially to FLSmidth's earnings until the end of 2015.
The new cement plant will be PT Semen Gresik's fifth production line. FLSmidth has supplied the company's four other production lines that are located in Tuban, Java. PT Semen Gresik is part of the PT Semen Indonesia Group, which currently has a total capacity of 30Mt/yr of cement from all of its plants.
"This is the second order to FLSmidth from the PT Semen Indonesia Group within two months and we are happy to continue our long successful partnership with the group," said president of the Cement Division, Per Mejnert Kristensen.
Myanmar: Indonesia's largest cement producer PT Semen Indonesia, formerly Semen Gresik, has announced that it will build a US$200m cement plant in Myanmar early in 2014 as part of its expansion into the Southeast Asian market.
The company may pitch about US$70m for the plant, which it would set up with its Myanmar partners, as it aimed to control about a 40% stake in the planned joint venture, said president director Dwi Soetjipto in a press event reported by the Jakarta Post. The construction of the cement plant, designated with a capacity of 1Mt/yr, is scheduled to start in early 2014, while operations are expected to begin in 2017. Based on the firm's plan, the new plant will serve the Myanmar market and neighbouring countries like Thailand and Bangladesh.
The move by Semen Indonesia follows its acquisition of Vietnam's largest cement producer, Thang Long Cement Joint Stock Company, in late 2012. It now aims to expand its annual capacity to 6.5Mt/yr from 2.3Mt/yr by establishing two new plants. At home in Indonesia, Semen Indonesia is also preparing for capacity upgrades with the construction of cement plants in Rembang, Central Java and Padang, West Sumatra, both with production capacities of over 2.5Mt/yr.
In 2013 the firm has targeted a domestic market share of up to 44%, up from 41% in 2012, supported by increased output to around 27Mt from 22.6Mt in 2012, according to Dwi. The overall domestic cement market is estimated to increase by more than 10% to 6Mt in 2013, according to the Indonesian Cement Association.
Indonesia: Indonesia's cement sales in November 2012 rose by 17% compared to November 2011, a faster pace than the previous month, according to data from the country's biggest cement firm Semen Gresik.
The sales of 5.23Mt were up by 0.9% compared to October 2012. More than 55% were on the main island Java, with the Molucca islands and Papua posting the highest annual sales growth at 95%.
Between 1 January 2012 and 30 November 2012 sales surged by 15% year-on-year, according to data from the Indonesian Cement Association (ASI). In the first 11 months of 2012 sales rose to 49.9Mt, compared to 43.4Mt in same period of 2011. Over the 11 months, Java consumed 55% of the Indonesian cement total, Sumatra consumed 22% and Sulawesi and Kalimantan each consumed 7.4% of the total.
Vietnam: Indonesian cement producer Semen Gresik has bought the Vietnamese cement company Thang Long Cement. The purchase was included in a conditional sales purchase agreement between Semen Gresik and Ha Noi General Export Import Joint Stock Company (Geleximco). Semen Gresik refused to state the value of the deal or the percentage of shares it had acquired.
"I am afraid we cannot mention it right now, but we are the majority. We will let you know in a month from now," said Dwi Sutjipto, Semen Gresik CEO. With the acquisition Semen Gresik hope to increase its market share and production capacity in Vietnam.
Thang Long Cement has a total production capacity of 2.3Mt/yr. Two new factories are expected to open soon, in the Quang Ninh and Binh Phuoc provinces, increasing the company's total capacity to 6.5Mt/yr.
Indonesia: Cement sales in Indonesia have hit a record high of 5.16Mt in September 2012, according to data from the country's largest cement producer PT Semen Gresik. The amount represents a 34.4% rise compared to the same month in 2011 when sales were 3.84Mt.
September 2012 sales were boosted by increased monthly sales on the main islands of Java and Sumatra. However sales on the island of Moluccas and Papua fell by 21.7% on a monthly basis. The strong September 2012 sales follow a dip in sales in August 2012 due to fewer working days during religious festivities. Domestic cement sales in Indonesia fluctuate with factors such as holidays and government project completion deadlines.
"We expect domestic volume growth of 12.6% in 2012 and 10.8% in 2013, helped by strong marketing sales," commented Teguh Hartanto, an analyst for Bahana Securities in Jakarta.
Indonesia: PT Semen Gresik, Indonesia's largest cement producer, plans to spend US$400m-US$500m to expand its operation into Vietnam and Myanmar by the end of 2012, according to its general director Dwi Soetjipto.
Semen Gresik intends to finance 20% of the expansion with internal cash and the remainder with external sources, possibly from a global bonds issue. In case any negotiations conclude by the end of 2012, Semen Gresik would likely issue bonds in 2013, Dwi added.
The company has been assessing potential local partners for a joint venture for a plant in Myanmar to produce around 600,000t/yr, in which Semen Gresik will contribute US$150m. However, Dwi Soetjipto declined to discuss Vietnamese expansion plans in detail, hinting at an acquisition.
Semen Gresik reported total assets of US$2.25bn at the end of March 2012. The firm's revenues in the first quarter of 2012, rose by 20% year-on-year to US$458m. Its cement sales fell at 4.94Mt in Jan-Mar period, making up 39.3% of Indonesia's market share. Semen Gresik predicts that its cement sales will reach 22.5Mt/yr in 2012, up from 19.72Mt/yr in 2011. Revenues are expected to rise 15% year-on-year to US$1.93bn.
Indonesia: Indonesia's domestic cement sales were 12.5Mt in the first quarter of 2012, up 18.2% year-on-year compared to the same period in 2011, according to data from cement firm PT Semen Gresik. March 2012 sales were 4.4Mt, a rise of 16.2% year-on-year, the data showed, with most sales on the islands of Sumatra and Java.
"Indonesia's low cement consumption of around 199kg/capita in 2011 continues to provide ample room for growth," said Teguh Hartanto, analyst at Bahana Securities in Jakarta.
PT Indocement Tunggal Perkasa Tbk, Indonesia's biggest cement firm by market value, has estimated that national demand for cement will grow by 8-10% as infrastructure projects increase after a government law in December 2011 speeds up land acquisition. The country's cement sales fluctuate month to month depending on factors such as holidays and the government's end-of-year project completion deadlines.